Reply to Why is DCUM SO conservative with housing?

Forum Index » Money and Finances

Reply to "Why is DCUM SO conservative with housing?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous]I don’t get why you wouldn’t *want* to be conservative about it, ideally.

Don’t you like to take vacations, have (possibly expensive) hobbies, go out to dinner, concerts, theater, bars with friends, have kids? Plus, you know, save.

All of that takes money.[/quote]

OP here. I’ve always worked from home so a huge portion of my life is spent in my house. I would much rather spend discretionary income on a nice house than on nights on the town or hobbies which occupy a relatively small portion of my life.

Also, barring financial catastrophes that force you to sell at inopportune times, you get back much of your housing expense due to appreciation. A $1.6 million house that appreciates 4% per year is earning you $64,000/year at first (more later on as compounding takes over). That might roughly cover your interest, taxes and insurance (all but the “principal” in PITI). Of course, you do still have maintenance expenses. But assuming you put 20% down ($320,000), [b]where else are you consistently earning 64K on a 320K investment??[/b] And you get the higher quality of life thrown in there![/quote]

That's not what you're earning here, either, because you're ignoring the ~$68k you have to pay each yer for the mortgage.  FFS, OP.  [/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics